Employee Engagement Sample Results

Defining Employee Engagement Employee Engagement is a critical measure of person-organization alignment Engaged employees share a common set of attitudes and beliefs which, taken together, reflect a vital aspect of organizational health Pride and Commitment Job Satisfaction Motivation Advocacy

Engagement Impact - Examples Why is it better to have employees with HIGH vs. LOW levels of engagement? An estimated 19% of the US workforce is disengaged, costing the US economy upwards of $300 Billion in lost productivity* Fortune's 100 Best Companies to Work For have had a 10.6% annual return since 1998, while companies listed on the S&P 500 have had only a 5.7% return in that period * *Information from Izzo and Withers (2000)

Engagement Impact – Continued Highly engaged companies are*: 29% higher in revenue 50% more likely to have above-average customer loyalty 44% more likely to turn above-average profits Highly engaged workgroups are**: 44% higher retention 56% higher in customer loyalty 50% more productive 33% more profitable *Information from Izzo and Withers (2000) **Information form The Right Group and Manpower (2002)

Importance of Engagement It is essential that every person understands and commits to your business strategy—as stated in your brand, vision, mission or values—for your organization to be successful in the marketplace Employees must know specifically what they can do on their individual jobs each and every day to truly make a measurable difference in bottom line results Engagement must be based on strong diagnostics and executed with a focused, creative strategy designed to prove the impact on business results

Results

Survey Participation 500 Surveyed  475 Responded = 95% response rate Margin of Error = +/- 1.1% @ 95% confidence Surveys were administered on-line and processed by Right Management Rating Scale: 5 4 3 2 1 Strongly Agree Neutral Disagree Strongly Not Agree Disagree Applicable NA

Sample Characteristics n % Job Level VPs & Above 8 1.7% Team Leader/Director 42 9.1% Team Member 413 89.2% 463 100.0% Division Claims Services 163 38.7% Account Services 110 26.1% Information Technology 40 9.5% Legal 40 9.5% Finance 36 8.6% Underwriting & Product Services 20 4.8% HR & Organizational Effectiveness 12 2.9% 421 100.0% Tenure Less than 1 year 45 9.7% 1 to up to 3 years 54 11.6% 3 to up to 10 years 146 31.5% More than 10 years 219 47.2% 464 100.0% Location Phoenix home office 380 83.7% Tucson field office 39 8.6% Other field office 35 7.7% 454 100.0%

Interpretation Guidelines % Favorable 60 or more 50-59 49 or less All Systems Go! Warning Red Alert!

Theme Level Analysis Reliability Items .85 8 .81 8 .92 11 .78 8 .82 8 .85 8 .81 8 .92 11 .78 8 .82 8 .86 9 .91 8

Item Level Analysis: Culture (8) Employees feel encouraged to own their work, support one another and suggest innovative ideas; however, they don’t feel comfortable speaking up and expressing differences of opinion is not encouraged. Item N Mean 469 4.20 470 3.96 472 3.93 471 3.86 3.70 3.64 3.21 2.90

Qualitative Analyses

One Improvement (N= 379) Employees recommended improvements to their benefits (e.g., higher salaries, telecommuting opportunities, additional time off) Overall compensation, either through salary increases or significantly increased vacation time More opportunities for telecommuting, as long as job duties are covered. Wages paid more fairly on the job and responsibilities, instead of by the broadband TYPE goals - to change or remove this process. Even though it has been addressed to let team members know if they are not participating, not all team members participate, yet receive tip goal payments Employees would like to have development plans and see improvements in the performance evaluation system Simplified performance evaluation system, and a improved HRIS Change how employees are reviewed. The 360 reviews are useless, and the milestone settings are too unreachable which discourages more than it encourages. Hold ALL employees accountable for their work performances/attendance

What Not to Change (N= 206) Employees like the benefits they receive (e.g., medical, retirement plans, vacation, etc.) I very, very, very much appreciate the benefits package provided to us. It is unheard of in the business community and puts my mind at ease. No more additional costs associated with our health benefits. Flex time or working from home. Employees appreciate the organizations investment in employee development The opportunity for education offered to all of us. This benefit is better than any other company and this organization encourages everyone to take advantage of this. I would not want the education benefits to change, I love that this organization supports our personal and professional growth. The opportunities offered to move or learn about different aspects of the company or outside the company.

Employee Engagement

Defining Employee Engagement Employee Engagement is a critical measure of person-organization alignment Engaged employees share a common set of attitudes and beliefs which, taken together, reflect a vital aspect of organizational health Pride Job Satisfaction Motivation Advocacy

Right’s Model of Employee Engagement TM Employee Engagement Business Outcomes Performance & Profitability Sales & Employee Attraction Customer Service Productivity Turnover Motivation Advocacy Satisfaction Satisfaction: is the most basic measure of employee opinion. Satisfaction is as a passive state, not necessarily connected to productive behaviours. Motivation: is a more proactive measure of employee opinion, probing whether staff feel stimulated in their role and driven to perform towards the achievement of business objectives as opposed to simply being satisfied with their work. Strongly linked to productivity measures. Commitment: is a measure of employee alignment with the values and culture of the organisation and of their commitment to the achievement of the organisation’s business vision. Strongly linked to employee loyalty and customer service excellence. Advocacy: is a measure of whether employees would speak highly of the organisation in regard to the organisation as an employer and the organisation’s products, services and brand. Strong links with customer and employee attraction. Engagement: is a composite measure of satisfaction, motivation, commitment, brand advocacy and employer advocacy. Strongly linked to long-term business performance, profit growth and brand promise delivery. Pride

Employee Engagement Level High 60% Engaged Medium 48.5% % Engaged 30% Low 51.5% Not Engaged

Employee Engagement Model Right Benchmark* TM 2005 Survey - 14% 60% Pride 74% - 11% - 1% 81% products/services 74% employer 92% 75% Advocacy - 12% 74% Motivation 86% - 14% 75% Satisfaction 89% - 11% 49% Employee Engagement 60% *Best-in-Class Companies Reliability = .86

Key Outcomes

Key Outcome Measures Item N Mean 469 3.97 468 3.11

Retention Which statement best describes your current plans? % Agree I am leaving this organization as soon as I can 2% I plan on leaving in the next 6 months 6% I plan on being here another year but I am not sure after that 11% I plan on being here for the next 2 years 26% I have no plans whatsoever to leave 55% Total 100%

Driver Analyses

Model of Organization Performance Drivers Impact Engagement Impact Key Outcomes Item 1 ? Motivation ? ? Item 2 Pride Advocacy Outcomes Satisfaction ? Item 3

Key Driver Analysis  Engagement Driver Impact Outcome .24 REWARD & RECOGNITION .17 COMMUNICATION Employee Engagement* .15 MY LEADER 2 R = 36% .15 CULTURE *Composite measure of Advocacy, Pride, Motivation, and Satisfaction.

Key Driver Analysis  Employee Attraction Drivers Engagement Impact Key Outcome Reward & Recognition Motivation Communication .13 Employer Advocacy Pride My Leader Employee Attraction* Satisfaction Culture 2 R = 39% 44. This organization promotes employees who deserve it. (Reward & Recognition, 25%) .25 .18 60. The Executive Team works well together. (Executive Leaders, 28%) 2. I feel well informed about what is going on. (Communication, 45%) .17 .15 43. This organization rewards its employees well compared to its competitors. (R&R, 35%)

Segmentation Analysis

Engagement – Great Place to Work Matrix High Stars 55% Benchwarmers 15% Great Place to Work Disconnected 15% Free Agents 15% Low High Engaged

Demographic Segmentation Stars Bench Free-Agents Saboteurs warmers Level VPs & Above (8) 100% 0% 0% 0% Team Leader/Director (42) 76% 10% 4% 10% Team Member (413) 44% 30% 1% 25% Tenure Less than 1 year 49% 29% 0% 22% 1-3 years 37% 28% 3% 32% 3-10 years 48% 31% 2% 19% More than 10 years 49% 26% 1% 24% Division HR 75% 17% 0% 8% IT 58% 27% 0% 15% Legal 58% 25% 0% 18% Claims Services 48% 34% 1% 17% Finance 47% 22% 6% 25% Account Services 46% 23% 1% 30% Underwriting 35% 40% 0% 25%

Key Differences Analyses

Demographic Differences Key Variables Demographic Variables Level Location Division Tenure My Leader Culture Work Environment Executive Leadership Recognition & Rewards Communications Learning & Development Engagement Retention Great Place to Work Employee Attraction

Demographic Differences - Level The ratio of engaged to disengaged employees is best among Team Leaders and VPs & Above .8 to 1 4 to 1 8 to 1 Ratio N=413 N=42 N=8

Demographic Differences - Level Team Members are significantly less positive about this organization as a Great Place to Work compared to VPs & Above. N=413 N=42 N=8

Summary & Implications

Summary and Implications Strengths: Within team effectiveness (role clarity, support, etc.) 55% Stars overall Team Leaders and VPs are highly engaged Opportunity Areas: Cross functional effectiveness Communication and perception of leaders 25% Benchwarmers overall Team Member engagement scores are moderate Level of Engagement: Medium, 49% Drivers of Engagement: Reward & Recognition Communication My Leader Culture

Next Steps

Next Steps Survey Data EMPLOYEE OPINION SURVEY DATA Strategic Executive Strategic Survey Data Leadership Presentation of Results Managers Tactical EMPLOYEE OPINION SURVEY DATA Action Planning Sessions Employees Feedback Employee Survey Communications

Analysis of Written Comments Percentage